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WA's new GST share abysmal: treasurer

WA's new treasurer Ben Wyatt has labelled a four cent increase to the state's GST share "abysmal" and called the Commonwealth Grants Commission "a threat to the sustainability of the state's finances".

The commission released its annual distribution figures on Friday as the nation's treasurers met in Canberra.

While WA's share for 2017-18 was expected to rise from a record low of 30.3 cents in the dollar to about 38 cents, it only lifted to 34.4 cents.

That equates to an extra $378 million.

The commission noted the decline in WA's revenue raising capacity due to lower iron ore royalties and below average growth in stamp duty and payroll tax.

It argued that was partly offset by slowing population growth, which reduced the state's need to invest in new infrastructure.

The commission also noted WA had the nation's third highest assessed expenses and second highest investment need per capita due to more people in remote areas, above average wage levels and below average private health cover.

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But it still deemed WA as having the strongest fiscal capacity of all the states.

Mr Wyatt said the allocation was abysmal and a "hefty blow" to Labor's plans to return the state budget to surplus by 2019/20.

He also labelled the commission a joke and "a threat to the sustainability of the state's finances".

Earlier, Premier Mark McGowan said he'd ask Prime Minister Malcolm Turnbull, when they met for the first time in Sydney on Friday, to include gambling revenue in the GST distribution to benefit the pokie-averse state.

WA's few pokie machines are restricted to James Packer's Crown casino.

"We're penalised for that. Other states knock back mining projects and they're not penalised for that," Mr McGowan told reporters.

He also backed a call by Liberal Senator Dean Smith for a Productivity Commission review of the Commonwealth Grants Commission, saying it needs a complete overhaul.

Mr Smith's Liberal senate colleague Linda Reynolds took to social media to express her anger at the allocation, calling it a "disgrace" and alluding to secession.

Dr Nahan said he'd work on convincing Mr Turnbull, but Mr McGowan would have to secure a commitment from federal Labor leader Bill Shorten about introducing a floor below which no share of the GST could fall.

Mr McGowan said he'd co-operate but rejects the suggestion Mr Shorten is a sticking point.

Mr Turnbull had the power to change the distribution formula himself, he said.

The prime minister says WA will have to wait until 2019/20 for the floor, which will only be introduced after the state's share rebounds above 70 cents in the dollar under the current formula.